Shell Share Discussion Threads

[sogoesit] 12/1/2016 18:46

Fangorn, thanks for your feed-back.
As I said I don't believe those figures but am willing to be persuaded if I have sight of the report.
Electricity costs are "marginal" for a beam pump.

For example a 20hp electric motor on a beam pump lifting oil from 4,500ft would consume about 0.75kW x 24 = 18kW-hr per day running continuously.
Say electricity in Texas costs 6c/kw-hr that makes $1.00/day.

And the price of oil is????

So, that's not the major cost; then what "costs" are they assuming?
An operator with an installed well and pump only cares about his/her lifting cost (i.e. variable cost) unless he/she has borrowed money.

The marginal costs of stripper wells are nowhere near $50/bbl. In my mind thats a ludicrous figure.

Good luck!

[careful] 12/1/2016 17:07

Waiting for the mix and match details to come through.
if the price is right I think I will take all Shell shares in exchange for my BG.
i have a larger holding in Shell but I feel they will come good.
oil price will rebound strongly I reckon.

[84stewart] 12/1/2016 14:54

I DID NOT KNOW U HAD AN OPTION I THOUGHT IT WAS 383P P/SHARE +5440 PER 10,000 BG SHARES I AWAIT MY PAPER WORK

[p49b] 12/1/2016 14:35

i have received from my broker the cash/shares split of my holdings in BG and considering wether to go for the all rdsb option (mix and match). At todays price i would be paying £12.77p for each rdsb and the remainng 3.83p cash.
What are you all considering doing with your holdings?

[montyhedge] 12/1/2016 13:56

Dividend with weak £ v $ yield roughly 9.2%Weak £ great for companies who report in $.

[fangorn2] 12/1/2016 13:53

Sogesit,

Have to agree with Monty re stripper wells.

Called stripper wells, these produce a negligible amount of oil individually but together account for about a tenth of U.S. Output.

Stripper wells are wells that produce fewer than 15 barrels of oil per day.

That’s not a lot of oil. However, there are thousands of these little wells out there all over the U.S. Together, they equal about 750,000 barrels of oil production per day. It’s not an insignificant amount.

Now, they need oil priced at $50 a barrel and above to operate, and that’s basically the electricity to run the pumps and so forth. So I expect all of them to be shut down in the very near future with oil prices where they are.

Oxford Resource comment. Jan 2016

[ariane] 12/1/2016 13:21

SHELL HAS STILL VERY STRONG FREE CASH FLOW

CAN STILL CUT CAPEX OR EVEN BORROW TO FINANCE DIVI IF
NECESSARY

I WOULD BE SURPRISED IF DIV CUT DURING NEXT 2 YEARS
BUT PERHAPS EVEN MORE SURPRISED IF INCREASED

ROLL ON FEB SO ALL CURRENT TOPICS CAN CEASE

[losos] 12/1/2016 13:03

EI - yes if they get through '16 without a cut then '17 crude price may just be up a tad. Doesn't have to move up a lot just start rising, loads of people around who can do the projections ha ha.

[essentialinvestor] 12/1/2016 12:01

'16 looks fine, crude will determine '17, just my take.

[rcturner2] 12/1/2016 11:59

monty, if you think the fact that the dividend has never been cut before and that the CEO says it won't be cut mean that it can't be cut then you are stupid.

[badtime] 12/1/2016 11:37

Ye but Monty...The same CEO who you want to walk away from the deal ..so effectively change his mind ...hmmm

[emeraldzebra] 12/1/2016 11:23

until they decide to CUT the divi - which will probably happen soon

[montyhedge] 12/1/2016 11:11

One thing boys, the weak pound will make the dividend larger, even if payment this quarter is same as last year 47c payment would be 32p £ v $ 1.45.
This yield is incredible.

The weaker the £ the larger the dividend, yipeeeeeeeeeeee.

[whiskeyinthejar] 12/1/2016 10:10

Opec president says today he sees an emergency meeting in March because he says they said that they would have one if poo hit $ 35.

[montyhedge] 12/1/2016 09:14

Fund manager on CNBC said US shale producers losing $20 a barrel. Rig count and supply will fall. Saudi plan working to make them go bust.

[essentialinvestor] 12/1/2016 08:34

If RBS had made the call 12 months ago then it merits respect,
they highlighted this well in to a commodity meltdown, it looks like
stating the obvious after the event imv.

[84stewart] 12/1/2016 08:30

Monty
It would be £806mln £700mln walk away fee + £106mln advisors fee yes peanuts No not in this environment

[montyhedge] 12/1/2016 08:28

Shorting hedgies have made a fortune on Shell. Still not a done deal. Shareholders own the company not the directors.Come back in 12 months is the call.

[montyhedge] 12/1/2016 08:26

Of course they will, a lot of fund managers have dual holdings.But voting NO on the Shell vote, strange.I think covering themselves if it all goes pear shape for Shell, they can turn around and say we voted NO for the deal.

[philo124] 12/1/2016 08:25

US should remind Saudis who guarantees their safety.

[holts] 12/1/2016 08:21

Standard life are of course voting their BG holding for the deal , can't blame them though .

[montyhedge] 12/1/2016 08:05

9% yield is this the bargain of 2016 for income investors?

[montyhedge] 12/1/2016 07:54

Totally agree, walk away lose £106m in fees, peanuts.Come back in 12 months officially can bid again. Offer 600p cash, BG holders would take that easily.Standard Life the first to say NO. Let's hope the others follow.